Oakland County Probate & Estate Administration Law Blog

If you own a successful business in Michigan, no matter what your age is, it's time to start thinking about passing the business on to your successors. Many admirable entrepreneurs are so immersed in business operations that they become in large part defined by decisions related to the company, so it becomes difficult to let the business fall under the control of other parties, even if they're family members.

But good business succession plans typically involve good estate administration plans. This can be especially true for family businesses, the assets  of which, if not divied up carefully among loved ones, could become a major point of contention in probate court.

How can people in Michigan plan for the unfortunate but real possibility that their heirs and beneficiaries will encounter debt problems or some other financially draining event such as divorce? This question too often goes unaddressed in estate planning, and the money that well-meaning estate planners intend for their loved ones sometimes ends up being divided in a divorce settlement or siphoned away to pay off debt.

To avoid this unforeseen situation, estate owners can establish a trust for their loved ones. This option is different than a will because the money distributed through a will can be demanded by creditors or split apart in a divorce. But if you create a trust and name your beneficiaries as trustees, then they can safely access the funds throughout their lifetime, regardless of a divorce or debt obligation.

Estate tax laws have changed in the United States, and many Wayne County residents will need to revise their estate planning documents to keep up with the times. In anticipation of the changes, high-earners throughout the country established trusts in 2012 and took other estate planning measures to protect assets and limit tax liabilities.

A directed trust, for instance, involves giving an investment trustee or other advisor the power to make decisions about investments. The investment trustee is not the general trustee, so it is important in these cases that all of the involved parties carefully coordinate to make the best decisions with regard to allocating assets and harvesting gains and losses.

In our last post we discussed the importance of making plans for the end of your life -- both death itself and the years leading up to it. As we grow elderly, we become much more vulnerable. Our bodies don't work as well and we may have a difficult time keeping track of personal and business affairs. Choosing a trustworthy power of attorney, conservator or estate administrator can provide some extra peace of mind as the ability to make complex health care or estate decisions gradually diminishes.

Michigan residents -- particularly those mature enough to easily recognize actor Mickey Rooney -- might be interested to know that the 92-year-old actor recently had a change of conservatorship. His attorney will now oversee his affairs following allegations that the former child actor was subjected to elder abuse by his stepson and the man's wife.